Cashed out a life insurance policy and recieved 122K total. Paid 108K over the past 10 years. Received a 1099R showing distibution amount of 126K in box 1 and taxable amount of 18K and that I paid 108K. Do I really owe taxes on the 4k I did not receive that was a pentaly called a surrender charge? Please help. Called IRS and they did not know. They told me to call the insurance company.
